FN Media Group Presents Microsmallcap.com Market Commentary
New York, NY – October 1, 2020 – Silver has been consistently outperforming gold this year, creating some serious excitement around the silver market and the companies operating in prolific regions. Although silver has come down from its high of $29.85, it’s still up over 75% since the beginning of the year at $23.50 and could go higher still as investors look for protection against volatile equity markets. The rising prices have resulted in significant investments into the space, along with bonanza-grade silver discoveries, generating exciting opportunities for silver mining companies like Vizsla Resources Corp. (TSXV:VZLA) (OTCQB:VIZSF), First Majestic Silver Corp (NYSE:AG) (TSX:FR), Pan American Silver Corp (TSX:PAAS) (NASDAQ:PAAS), Coeur Mining (NYSE:CDE), and Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI).
Junior miner Vizsla Resources Corp. (VZLA.V) (VIZSF.QB) is proving itself as a force to be reckoned with in the space after announcing three sets of impressive high-grade silver drill results from its Panuco silver-gold project in Sinaloa over the last month. The company also received a C$10 million investment from Eric Sprott during a private placement financing at the end of July.
Uncovering Bonanza-Grade Silver in Mexico
Mexico is the top silver producing country in the world, responsible for nearly 23% of world production and more than 200 million ounces in 2019. In addition to its world-class mineral wealth, the country offers a regulatory environment that is highly favorable to the mining industry. In 2020, the ‘last great silver district’ in the country was consolidated for the first time by Vizsla Resources Corp.
After sampling high-grade silver at the Panuco silver-gold project, Vizsla commenced a drill program that will include up to 31,000 meters of drilling in 2020 and the company has continued to uncover promising results ever since.
Vizsla Resources Corp. has continued to turn out exciting discoveries at Panuco, starting with a high-grade discovery of 8,078 g/t silver equivalent (1,808.2 g/t silver, 66.8 g/t gold, 2.99% lead and 3.30 % zinc) over 6.0m from 69.0, including 12,992 g/t silver equivalent (2,889.2 g/t silver, 107.9 g/t gold, 4.80% lead and 4.56 % zinc) over 3.7m from 69.5m, including 21,034 g/t silver equivalent (2,240.0 g/t silver, 199.0 g/t gold, 12.85% lead and 3.27% zinc) over 0.85m from 72.35m. A month later, the company reported drilling 421 g/t silver equivalent (231.0 g/t silver and 2.19 g/t gold) over 6.75 meters from 286.40 meters including 1,245 g/t silver equivalent (821.0 g/t silver and 5.08 g/t gold) over 1.5m from 286.4 m. Then on August 27, Vizsla Resources Corp. announced its third discovery on the property after drilling 1,019 silver equivalent (689.5 grams per tonne (g/t) silver, 3.76 g/t gold) over 2.5 meters from 141.5 meters including 2,206 g/t silver eq.
These drill results are very encouraging indeed, but perhaps the most intriguing part about the Panuco project is the accelerated path to production available to the company.
Vizsla Resources Corp. has an option to acquire 100% of the newly consolidated 9,386.5 hectare Panuco district, which includes the acquisition of over 75 kilometers of total vein extent, a 500 ton per day mill, 35 kilometers of underground mines, tailings facilities, roads, power, and permits. Unlike other junior exploration companies, Vizsla has the opportunity to bring Panuco to production if it chooses, at a relatively low cost.
Mexico Silver Producers Resume Operations
After temporary shutdowns during the second quarter due to COVID-19, Mexico mining operations have mainly resumed. After getting the green light from the Mexican government on May 13, Coeur Mining, Inc. (NYSE:CDE) restarted active mining, processing, and exploration activities at its Palmarejo gold-silver complex in Mexico and not a moment too soon.
Although Coeur has three US-based mines that remained in operation, the production loss at the Palmarejo mine had a significant impact on the company’s Q2 2020 results. In the second quarter, Palmarejo produced 269 million tons compared to 479 million tons in Q1, which represents a 43% drop quarter over quarter.
Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) was also forced to temporarily halt production at its San Jose mine in Mexico, but has since resumed operations. Despite being shut down for 54 days, the San Jose Mine produced 1,029,049 ounces of silver and 6,654 ounces of gold in Q2, with average head grades of 220 g/t silver and 1.42 g/t gold. Of course, it was still a significant drop from Q1 production of 1,570,201 ounces of silver and 9,630 ounces of gold.
Silver producer First Majestic Silver Corp (NYSE:AG) (TSX:FR) also experienced a slight dip in production in the second quarter, but the numbers were better than expected due to a slower ramp down at its San Dimas mine. In Q2 2020, the company produced 3.5 million silver equivalent ounces, consisting of 1.8 million ounces of silver and 15,764 ounces of gold, with San Dimas producing a total of 2.4 million silver equivalent ounces.
Pan American Silver Corp (TSX:PAAS) (NASDAQ:PAAS) is another silver producer that faced temporary shutdowns, but the company has clearly come back with a bang. In Q2 2020, the company reported a revenue of $249.5 million, with $62.8 million in net cash generated from operations. The company also increased its estimated mineral reserves thanks to 200,000 meters of drilling from July 2019 to June 2020. During that period, the company was able to add 22.1 million ounces of silver and 719,000 ounces of gold to its proven and probable mineral reserves for a total of approximately 806 million ounces of silver and 9.4 million ounces of gold.
While it’s encouraging to see silver producers come back online after a few difficult months, it’s junior miners like Vizsla Resources Corp. that investors have been keeping their eyes on and it’s easy to see why.
Disclaimer: Microsmallcap.com (MSC) is the source of the Article and content set forth above. MSC owns and operates Miningnewsdaily.com. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Vizsla Resources Corp.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.
FN Media Group, LLC